10-year defense package set to be signed soon; Israel will gradually increase the proportion of the money it spends inside the US

US President Barack Obama, right, and Israeli Prime Minister Benjamin Netanyahu hold a meeting in the Oval Office of the White House in Washington, DC, November 9, 2015. (AFP PHOTO / SAUL LOEB)

Israel and the US have reportedly resolved two key sticking points in drawn-out negotiations for a 10-year American aid package, and Prime Minister Benjamin Netanyahu has dispatched a senior defense official to Washington to finalize the agreement expected to be signed soon.

The new aid deal is set to come into effect in 2018, when the current one expires.

According to the Ynet news website, Israel will not request supplemental funding for the entire 10 years, and in the final half of the decade, will incrementally increase the amount it spends in the US per annum, until the entire amount of aid is being invested in the American domestic market.

Brigadier General (res.) Yaakov Nagel, the acting head of the National Security Council, set off for the US on Sunday, and will meet with his American counterparts to work on the final draft the new memorandum of understanding (MOU).

Yaakov Nagel (Miriam Alster/Flash90)

Negotiations on the deal have been going on for months amid tensions over the Iranian nuclear deal reached last year, which Israel vociferously opposed. Israel has charged that the accord signed between Tehran and six world powers, including the US, poses an existential threat to Israel.

Israel has already indicated that it will not seek additional military funding for 2017, which still falls under the terms of the last 10-year package. The defense aid for 2017 currently stands at $3.1 billion.

The Prime Minister’s Office said last week that Israel “places great value on the predictability and reliability of the military assistance it receives from the United States and on honoring bilateral agreements.

“Therefore, it is not in Israel’s interest for there to be any changes to the fixed annual MOU levels without the agreement of both the US administration and the Israeli government,” it added.

Netanyahu also said last week that he hoped to conclude the aid negotiations under the Obama administration, whose term ends in January 2017.

A Tamir missile fired from an Iron Dome missile defense battery during a trial in the United States in April, 2016. (Rafael Advanced Defense Systems)

The US offer currently on the table, outlined to members of Congress earlier this month in a letter from US National Security Adviser Susan Rice, includes a pledge to substantially increase the aid package, currently worth some $30 billion, and ink a new one that would constitute “the largest pledge of military assistance to any country in US history.” The letter was sent in response to a missive signed in April by 83 out of 100 senators calling on Obama to increase foreign aid to Israel and sign the new deal.

Under the existing agreement, Israel is permitted to spend about 25 percent of the aid it receives outside the US and another 13% on fuel for its aircraft — allowances no other recipient of US aid is granted.

According to the report, that arrangement originated in the 1980s to build up Israel’s defense industry, which has thrived, helping Israel to become among the top 10 arms exporters in the world — and in some fields a competitor with US firms.

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